Finance for a granny flat

Discussion in 'Investment Strategy' started by Patricia, 29th Aug, 2020.

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  1. Patricia

    Patricia Well-Known Member

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    Hi,

    Just would like some advice. I have a positively geared property in Western Sydney. I have just fixed my loan 3 months ago. Still have equity in it. Now I want to build a granny flat. Should I refinance to get equity or should I use my cash? I've heard of construction loans. Is it something I should consider? Thank you in advance for your advice.
     
    Patricia, 29th Aug, 2020
    #1
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  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Why not just borrow further with the same lender?
     
    Terry_w, 29th Aug, 2020
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  3. Patricia

    Patricia Well-Known Member

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    Thanks Terry, does that constitute a refinance with the same lender?
     
    Patricia, 29th Aug, 2020
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  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    No
     
    Terry_w, 29th Aug, 2020
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  5. Patricia

    Patricia Well-Known Member

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    Thanks Terry, I will speak to my broker about this.
     
    Patricia, 29th Aug, 2020
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  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    It's only a refinance if one loan pays out snother
     
    Terry_w, 29th Aug, 2020
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